This week, SMMT published the UK’s full-year light commercial vehicle registration figures, showing 315,422 registrations across 2025 – a decline of -10.3% year-on-year amid a tough economic environment which constrained fleet renewal.
Accelerating new electric van demand is critical and it increased significantly in 2025, with 30,169 registrations – up 36.2% on the previous year and a new record. It is impressive growth, with EVs accounting for 9.5% of the market – albeit still well short of the 16% target set government’s ZEV mandate. Given the target rises to 24% in 2026, rapid improvement in public chargepoint rollout and robust government support will be vital in order to bridge the gap between regulatory ambition and market reality.
Urgent focus must also be given to heavier vehicle decarbonisation so this week’s launch of a consultation over a new regulatory framework for HGV CO₂ emissions reduction – and potentially trailers and coaches – is a welcome step. The proposals to retain the phase-out date of new non-zero emission HGVs up to 26 tonnes by 2035, and all new non-zero emission HGVs by 2040, are ambitious given there is just one full fleet renewal cycle remaining.
Positively, zero emission incentives came this week with Plug-in Van and Truck Grants which help reduce the upfront cost of these vehicles. Large trucks above 26 tonnes are eligible for up to £120,000 per purchase, vans up to 2.5 tonnes for £2,500, and those above 2.5 tonnes to 4.25 tonnes for £5,000, with grants applied at point of sale. The scheme is funded through to the end of March 2026 and, with £18 million available, funding will be snapped up quickly so apply here before it’s too late.
Vehicle purchase incentives are an important for supporting fleet operators to transition but the upfront cost of depot grid connections is also a critical barrier, preventing many from even considering going electric. The Depot Charging Scheme shows success is possible but more substantial support will be needed – with a strategy for HGV decarbonisation that bases regulation on market realities, suitably bold incentives and an impetus to deliver infrastructure that meets the needs of all HGV types and powertrains.
With a realistic view of the new LCV and HGV markets and the support needed to deliver decarbonisation, 2026 can be the year in which market reality and ambitious regulation meet – ensuring that fleet uptake grows, industry remains viable, and the UK remains an attractive place for business investment.
